/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
QUÉBEC CITY, May 20, 2016 /CNW Telbec/ - Cominar Real Estate Investment Trust ("Cominar") (TSX: CUF.UN) announced today that it has closed the previously-announced public offering of its 4.247% Series 10 senior unsecured debentures in the principal amount of $225 million (the "Debentures"). The Debentures were offered at a price of $1,000 per $1,000 principal amount of Debentures, bear interest at a rate equal to 4.247% payable semi-annually in arrears, and will mature on May 23, 2023.
The Debentures were sold pursuant to an agency agreement with National Bank Financial Inc. and BMO Capital Markets, as co-lead agents, along with a syndicate that also includes Desjardins Securities Inc., RBC Dominion Securities Inc., Scotia Capital Inc. and TD Securities Inc., for total net proceeds to Cominar of approximately $223.8 million after deducting the agents' fee and the expenses of the offering.
Cominar intends to use the net proceeds of the offering of approximately $223.8 million to pay down debt outstanding under its unsecured revolving credit facility, to facilitate availability under its unsecured revolving credit facility for the repayment in full of the $250 million aggregate principal amount of Series 6 debentures due September 22, 2016.
The Debentures have not been and will not be registered under the United States Securities Act of 1933, as amended, and accordingly will not be offered, sold or delivered, directly or indirectly, within the United States, its territories, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of, a U.S. person, except pursuant to applicable exemptions from the registration requirements.
PROFILE as at May 20, 2016
Cominar is the third largest diversified real estate investment trust in Canada and remains the largest commercial property owner in the Province of Québec. Cominar currently owns a real estate portfolio of 537 properties in three different market segments, that is, office properties, retail properties and industrial and mixed-use properties. Cominar's portfolio totals 44.8 million square feet spread out across Québec, Ontario, the Atlantic Provinces and Western Canada. Cominar's objectives are to pay growing cash distributions to unitholders and to maximize unitholder value through proactive management and the expansion of its portfolio.
This press release may contain forward-looking statements with respect to Cominar and its operations, strategy, financial performance and financial condition. These statements generally can be identified by the use of forward-looking words such as "may", "will", "expect", "estimate", "anticipate", "intend", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of Cominar discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulation and the factors described under "Risk Factors" in the Annual Information Form of Cominar. The cautionary statements qualify all forward-looking statements attributable to Cominar and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release.
SOURCE COMINAR REAL ESTATE INVESTMENT TRUST
For further information: Michel Dallaire, Eng., Chairman of the Board and CEO, Sylvain Cossette, President and COO, Gilles Hamel, CPA, CA, Executive Vice-President and CFO, Tel: (418) 681-8151, firstname.lastname@example.org, email@example.com, firstname.lastname@example.org